Stocks Follow U.S. Lower

After opening sharply lower, the AEX general index retreated from earlier losses as New York opened flat. However, as Wall Street began to decline so did the AEX, ending the day at 676.68, down 8.34.

The main story of the day was a sharp drop in Nutricia shares after the specialty food company was forced to withdraw one of its baby foods from the U.K. market.

There was little other news, with relative dollar weakness damping sentiment. The Dutch stock market is highly dollar-sensitive as a number of index companies derive much of their overseas revenues in dollars.

Nutricia shares recovered slightly from morning lows to end the day 9.70 guilders lower to 267 guilders.

The company said Friday it has withdrawn its Milumil infant milk formula from the U.K. market after being warned by the U.K. government of an outbreak of salmonella in some children who had consumed the product.

Some 12 cases of salmonella anatum had been identified as of October 1996, but Nutricia said there "is no conclusive" proof that Milumil was the cause. It noted that the U.K. Department of Health has not tested any of Nutricia's products and that its factory shows no signs of contamination. The product is sold only in the U.K. and is responsible for only a small part of Nutricia's total turnover. Trade in the shares was suspended after they plummeted some 5.8%.

The problem brought to mind the trials of 1993 when Nutricia had to recall some million jars of Olivarit baby food, but traders said the price recovered as soon as it became clear the recall was on a smaller scale.

One of the few gainers on the day was
ASM Lithography
, which produces equipment used by companies that make semiconductors. Thursday ASML announced its 1996 profit had risen 65% to 218 million guilders and Friday Delta Lloyd raised the shares to a "buy" from a "hold." ASML shares rose 9.90 guilders to 121.90 guilders.